Briefly: In our opinion, no speculative positions are justified
Our intraday outlook is neutral, and our short-term outlook is neutral:
Intraday outlook (next 24 hours): neutral
Short-term outlook (next 1-2 weeks): neutral
Medium-term outlook (next 1-3 months): bearish
Long-term outlook (next year): bullish
The U.S. stock market indexes were mixed between -0.4% and 0.0% following volatile trading session on Thursday, as investors reacted to the FOMC's Rate Decision announcement. Our yesterday's neutral intraday outlook has proved accurate. The S&P 500 index extended its short-term uptrend, as it broke above 2,000 mark. However, then it has retraced its whole move up. The nearest important level of resistance remains at around 2,000. On the other hand, support level is at 1,950, and the next support level is at 1,900-1,920. There have been no confirmed positive signals so far. It looks like an upward correction within a downtrend:
Expectations before the opening of today's trading session are negative, with index futures currently down 0.6%. The European stock market indexes have lost 0.8-2.2% so far. Investors will now wait for the Leading Indicators number release at 10:00 a.m. The S&P 500 futures contract (CFD) trades within an intraday consolidation, following yesterday's decline. The nearest important level of resistance is at 1,980-2,000, and support level remains at 1,950-1,960, among others, as the 15-minute chart shows:
The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it trades within an intraday consolidation. The nearest important resistance level is at around 4,380, and support level is at 4,350, as we can see on the 15-minute chart:
Concluding, the broad stock market continued its short-term uptrend yesterday, before closing lower, as investors reacted to Fed's news release. There have been no confirmed positive signals so far. It still looks like an upward correction within a medium-term downtrend. We prefer to be out of the market, avoiding low risk/reward ratio trades. We will let you know when we think it is safe to get back in the market.
Thank you.
Paul Rejczak
Stock Trading Strategist
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